Mismanagement clouds Iraq development fund’s future

Iraq needs to enhance its wealth management policies, especially as the flow of oil revenues is set to fill the government’s coffers over the coming years, according to the International Monetary Fund (IMF). Frank Gunter, an economic advisor at the Multi National Force in Iraq, notes that establishing an SWF was one of the eight objectives of the Financial and Monetary Sector in the National Development Plan 2010-2014.
“A sovereign wealth fund (SWF) could help manage excess fiscal reserves more aggressively,” said the IMF. “Emerging resource exporters also use SWFs to generate returns abroad which cannot be productively invested at home. In addition, SWFs absorb excess liquidity and reduce inflationary pressure, which are typical macroeconomic challenges in natural resource-rich countries due to the size of export revenues.”……………………………….Full Article: Source